In Oostlander v Cervus Equipment Corporation, 2022 ABQB 200, the Court of Queen’s Bench of Alberta awarded 24 months’ pay in lieu of reasonable notice to a long-term heavy duty mechanic, less mitigation income. The court also deducted the Canadian Emergency Response Benefit (CERB) payments received by the employee. This decision follows the recent judicial trend we have observed in western Canada to deduct CERB payments from reasonable notice awards in wrongful dismissal claims.
Background
The employee worked from 1984 to 2020 as a heavy-duty mechanic. In May of 2018, the employer was notified that employment would terminate 16 months later on September 11, 2019, when certain operations ceased. The employee stated he was told a few days before the anticipated termination date that he “was being kept on” notwithstanding the May 2018 notice of termination. The employee continued to work with no further discussion about termination until June 3, 2020, when, relying on the previous working notice, the employer gave one months’ notice that employment would be terminated on July 3, 2020, on the basis that the original termination notice was effective. When the employee objected and his counsel wrote to the employer, the employer offered the employee another job doing the same work for the same remuneration. The employee rejected that offer and sued for wrongful dismissal. The employee claimed pay in lieu of notice of termination of 24 months’ wages and benefits less income...
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